As successful as I imagine FedEx to be all the time this kind of news surprises me. Obviously Fedex employees would be more keen to see something like this coming based on visable demand or lack of it. I'm glad if there is going to be some reductions that they will at least off the buyouts. The article linked below spells this situation out better and provides information on how UPS if doing as well. Best of luck to all FedEx employees affected.

Courtesy: Associated Press Via Quad-Cities Online

FedEx To Offer Staff Buyouts To Cut Costs

"The world's second largest package delivery company hinted at cutbacks earlier this summer when it said that slowing economic growth would crimp its earnings well into next year. It has already removed some aircraft from its fleet of more than 600 to account for a loss of demand."

More details are expected at an Oct 9-10 investor conference. If FedEx wants to return to margins of 10%, they'll need to cut about $1.3 billion in annual costs - which probably won't be attained solely through employee buy outs.

24 jets and 43 engines are being retired ... 21 Boeing 727's will be retired this fiscal year.

if assumptions could fly, airliners.net would be the world's busiest airport

Is that a net reduction are or some of those going to be replaced by other aircraft? I know the original plan was to replace the 727s with 757s. We currently have a 727 that comes into BTV (from EWR via SYR) and I was wondering whether they will convert that to a 757 or whether FX will discontinue that in favor of contracting the flight to a third party with a smaller aircraft.

Things are fine at FX. The shareholders, however, want higher profit margins regardless of reinvestment in equipment. None of the core FX companies (Express, Ground, Freight) are losing money nor are the margins sliding toward the red.

Quoting flyBTV (Reply 3):Is that a net reduction are or some of those going to be replaced by other aircraft? I know the original plan was to replace the 727s with 757s. We currently have a 727 that comes into BTV (from EWR via SYR) and I was wondering whether they will convert that to a 757 or whether FX will discontinue that in favor of contracting the flight to a third party with a smaller aircraft.

757s are replacing 727s on a 1-to-1 basis. If your ramp currently sees a 727, you are assured to get a 757 at some point. The replacement process has been greatly sped up as of late. FX really wants to fast-track the 757 rollouts.

Quoting bhmdiversion (Reply 5):Most of these positions being offered the buyout are from the station side (RT's, Ramps, etc.)

Nobody who deals with handing anything, packages or aircraft, will be affected. Nearly the entirety of these buyouts will be from administrative and managerial workgroups. Hourly employees are generally not eligible.

Quoting HPRamper (Reply 6):Quoting flyBTV (Reply 3):Is that a net reduction are or some of those going to be replaced by other aircraft? I know the original plan was to replace the 727s with 757s. We currently have a 727 that comes into BTV (from EWR via SYR) and I was wondering whether they will convert that to a 757 or whether FX will discontinue that in favor of contracting the flight to a third party with a smaller aircraft.
757s are replacing 727s on a 1-to-1 basis. If your ramp currently sees a 727, you are assured to get a 757 at some point. The replacement process has been greatly sped up as of late. FX really wants to fast-track the 757 rollouts.

Out of curiousity, where is the savings coming from switching from 727's to 757's? Less fuel and maintnance costs I'm assuming?

True, but what is interesting is that they are doing quite aggressive change outs of equipment. 757s and 767s for 727s and A310s, 777s pushing MD-11s into traditional MD-10 roles with DC-10s leaving, etc. Maybe the buyouts are a management's response to the investor's demands to "do something", while the real change will be that in a few years time they'll have a much more efficient air fleet.

Quoting KDAYflyer (Reply 11):Wow, I didnt think it was that high. Is there a source for fuel burn figures for different airframes?

I dont know of a source for those figures, but we are talking about three *old* engines versus two newer, more efficient ones. I don't think 40% is super crazy sounding. The 727 burns almost as much fuel as an Airbus on similar flight length.

I think some of you are reading more into this than needed. They offered the same type buyout package a few years ago (pilots not included) and for those that took it, it was a very good deal. I just finished my last sim ride friday and passed by a Basic Indoc class of new hires. Is UPS hiring? Fedex has ALWAYS been very swift to adjust as needed at the moment but if you knew the plans for the future as far as equipment and technology you would be amazed.